What will you receive less later

ING CDC Pensioenfonds is cutting back the accrual rate of your pension in 2022. This article provides several sample calculations to show you how this will affect your pension. And also the effect of the reduced accrual rate in three consecutive years.

Cutting back the accrual rate of your pension will have a direct impact on your pension. More information on the reasons for the decision is available here. The sample calculations in this article will help you estimate how the cutback will affect you.

Firstly, you should be aware that:

• The minimum amount of salary which does not qualify for pension accrual is called the ‘franchise’ (€ 14,544 in 2021; the amount for 2022 has not yet been announced).
• Your pensionable salary net of the franchise is your pension base.
• The accrual rate targeted for 2022 was 1.784% of your pension base. This will be reduced to 1.254%.

Three years reduction
In 2020, 2021 and 2022, your pension accrued at a lower rate. As a result, the amount of gross pension benefits you’ll eventually get will be lower as well. In 2022 your pension will accrue at 1.254% instead of 1.784%. In 2021 your pension accrued at 1.196% instead of the targeted 1.784%. And in 2020 your pension accrued at 1.328% instead of the targeted 1.780%.

To give you an idea of the amounts involved, we have worked out an example below. Based on your pensionable annual salary and pension base (i.e. your pensionable salary net of the state pension offset (franchise)) you can make a rough estimate. 

Pension base 2022	€ 48,000
Targeted accrual 2022	€ 856
Accrued in 2022 after cutback	€ 602
Difference in accrual	€ 254
The cutback of the accrual rate in 2022 means your gross monthly pension benefits (from the age of 67) will be reduced by	€ 21

 

Pension base 2021	€ 48,000
Targeted accrual 2021	€ 856
Accrued in 2021 after cutback	€ 574
Difference in accrual	€ 282
The cutback of the accrual rate in 2021 means your gross monthly pension benefits (from the age of 67) will be reduced by	€ 24

 

Pension base 2020	€ 48,000
Targeted accrual 2020	€ 854
Accrued in 2020 after cutback	€ 637
Difference in accrual	€ 217
The cutback of the accrual rate in 2020 means your gross monthly pension benefits (from the age of 67) will be reduced by	€ 18

 

Grip on your pension
Would you like to find out how to get a grip on your pension? Click here for an overview of what you can do. For instance, by setting aside additional retirement savings.